GLOBALIZATION &

CORPORATE
GOVERNANCE

OTHM LEVEL 7 POST GRADUATE

DIPLOMA IN STRATEGIC MANAGEMENT
AND LEADERSHIP
Student Name: Mohamed Ramalan

Student Registration Number: SML/OML7/20/684

OTHM Learner Registration Number:

Assignment Cover Sheet

Learner Name Mohamed Ramalan

Learner’s OTHM SML/OML7/20/684
Registration No.
Qualification Title OTHM Level 7 Diploma in Strategic Management and
Leadership
Unit Reference No J/616/2730
Unit Title Globalization and Corporate governance
Word Count
Submission Deadline 31.10.2022
Submitted Date 31.10.2022

Declaration
1. In submitting this assignment, I acknowledge that I understand the definition of, and
penalties for, cheating, collusion and plagiarism as set out in the OTHM policy.
2. I declare that the attached submission is my own original work. No significant part of it
has been submitted for any other assignment and I have acknowledged in my notes
and bibliography all written and electronic sources used.
3. I acknowledge that my assignment will be subjected to electronic scrutiny for
academic honesty.
4. I understand that the failure to meet these guidelines may instigate the Centre’s
malpractice procedures and risk of failure of the unit and/or qualification.

Ramalan Eisa

--------------------------------------------------- ----------------------------------------------------------
Learner’s Signature --
Date: Assessor’s Signature
Date:
Remarks

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Table of Contents
1.0. Task 01 – Report ............................................................................................................................ 3
1.1. Introduction .................................................................................................................................... 3
1.2. Impacts of globalization in Uber using PESTLE analysis .......................................................... 4
1.2.1.Political...................................................................................................................................... 4
1.2.2.Economy.................................................................................................................................... 5
1.2.3.Social ......................................................................................................................................... 6
1.2.4.Technological ............................................................................................................................ 6
1.2.5.Legal .......................................................................................................................................... 7
1.2.6. Environmental ......................................................................................................................... 7
1.3. Role of EU and International institutions on business organizations ....................................... 7
1.3.1. Uber and Role of European Union & International Organizations ................................... 8
2.0. Task-02-Presentation ..................................................................................................................... 9
Slide 1. What is corporate governance? .............................................................................................. 9
Slide 2. Diagram .................................................................................................................................. 10
Slide 3:Benefits of Corporate governance. ....................................................................................... 10
Slide 4: What is Corporate Social Responsibility?........................................................................... 11
Slide 5: What are business ethics and ethical issues? ...................................................................... 11
Slide 6. Ethical issues that come across in taxi business .............................................................. 11
Slide 7:The moral, socio-cultural issues that affect business organizations are, ....................... 12
Slide 8.Significance of corporate governance in global organizations ........................................... 13
Slide 9. Organizational approaches to ensuring positive policies of ethics and maintaining
workforce diversity. ............................................................................................................................ 13
Slide 10.The following are some of the approaches followed by organizations to maintain
positive policies of ethics. .................................................................................................................... 13
Slide 11.The organizational approaches to maintain workforce diversity. ................................... 14
3.0. Task-3-Report .............................................................................................................................. 15
3.1. Introduction .................................................................................................................................. 15
3.2. What is consumer protection law and why they are important? ............................................. 15
3.3. What is online trading? ............................................................................................................... 16
3.4. Significance of consumer protection laws and online trading in India ................................... 16
3.5. Summary of consumer protection laws and online trading in India. ...................................... 17
3.5.1.Further, the following are the important key features of the Consumer Protection Act
2019 .................................................................................................................................................. 18
3.6. What should Uber do to comply with the consumer protection laws and online trading? ... 19
References ............................................................................................................................................ 20

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1.0. Task 01 – Report

With reference to Uber, prepare a report concerning the impact of

globalisation on local businesses.
The report should also address the following:
• Using PESTLE as a framework (and supporting examples)
analyse the effects of globalisation on national economies.
• Evaluate the role of the EU and International institutions (e.g. IMF,
WTO, etc.) on business organisations.

1.1. Introduction

Globalization refers to the interconnection and integration of people politically, socially

and economically with the countries in the world. The definition of Investopedia refers
globalization to the spread of the flow of financial products, goods, technology,
information, and jobs across national borders and cultures. In terms of economics,
globalization is described as an interdependence of nations around the globe fostered
through free trade (Investopedia, 2022). Due to this we are moving from self-sufficient
country towards an integrated world despite the trade and geographical barriers. This has
helped local business markets immensely to expand their business with more profits.

Uber Technologies Inc. was founded in a city in USA named San Francisco before 12
years. Now it has grown widely over many countries and active in 1000+ cities
worldwide with millions of users relying on it in their day today life. This report will
analyze and evaluate the ways by which the Uber Company has seen development over
the period and the reasons for choosing these methods. It will also consider the factors
that are shaping the external environment of Uber such as political-legal, economic,
socio-cultural, environmental and technological (PESTLE)

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1.2. Impacts of globalization in Uber using PESTLE analysis

PESTLE analysis helps us to identify and understand the macro components of a business
environment. Each letter in PESTLE stands for Political, Economic, Social, Technological,
Legal and Environmental factors. It helps a company or business to understand the risk
factors that might impact a new business.

1.2.1.Political

The establishment of Uber has created a negative impact on traditional taxi drivers.
From Europe to North America, Uber has got into worldwide regulatory controversies with
the authorities over breaking the rules. In some cities around the world where it operates,
Uber is on conflicts with the regulators, while in others it has come across banning.

Example:
An article published in Reuters reports that the police in Cape Town, South Africa,
impounded 33 Uber vehicles over the weekend in a dispute over what type of permits
drivers should hold, an Uber executive said. (McBride, 2015)

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A report states that, Uber put up its operations in Austin in May 2016 after the proposal to
allow the company to self-regulate its drivers instead of maintaining the rules suggested
by the liberal city council that insisted that the ride-sharing drivers have to pass
fingerprint checking. Also, in 2017 the transport for London decided to strip Uber of its
License. (Henley, 2017)
Government scrutiny and wage laws also impacted Uber in national economies.

1.2.2.Economy

The national economies are facing recession due to the outbreak of covid-19. So due to
the lockdowns in almost all the cities in the world the transportation industry was affected
badly in the year 2020.

Example: A study states that the annual revenue and net income of Uber have dropped
by 31.71% and 30.1% respectively in 2020 and the quarterly net revenue is declined by
48.6%
Further, in Australia it is predicted that there will be a contraction by 4.2% in the income
because of the pandemic outbreak. So that outlines that the pandemic is a barrier to the
business organizations.

(Source: focusonbusiness.eu)

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Further it is reported in a journal that the increase in unemployment in recent years has
led to positive as well as negative effects to the business because the opportunity of most
efficient workers has been increased in the firm whereas the firm had to lose existing
hardworking employees (Erixon, 2018)

1.2.3.Social

The usage of smartphones have increased over the past due to technological advancements.
This has led to the increase of the usage of applications like Uber. So the customers of Uber
enjoys its easy access user friendly platform. The rise in the smartphone users and
applications has resulted in an increased level of profitability to the business. In addition
to that, Uber technology allows people to book, track their ride and their route picking time
and drop-in time in just one press. As per globalization, the social factors have been helping
the firm to grow in many parts of the world as consumers have been enjoying the novel
ideas and the cost effective transportation services that are provided by the firm.

1.2.4.Technological

Uber has created a remarkable change in the transportation industry through its adaptation
of technology. It stands out from the crowd among the other growing businesses with its
innovative technology, fast growth etc. People have started writing their experiences of
Uber rides in social media platforms where it increases the customers to search about it and
opt for it because of its affordable cost compared with other taxis. The user friendly
technology in uber allows people to check the location, decide the cost of the journey and
pay through the app instead of using cash. So in most of the national economies while the
other industries are struggling the Uber technology has been booming.

Example: A research written based on Australian markets states that the, Australia launched
a 5G network in ten cities and continues widespread expansion. This elevation has helped
the company to gain a higher level of competitive advantage with which they can compete
with their rivalries as they are more advanced in the technical field (Frue, 2017)

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1.2.5.Legal
Uber faces much criticism, outlaws and attempted prohibitions in worldwide locations. The
company must follow technical, copyright laws, labor and employee safety laws. As the
company abides them in almost all the countries it hampers the growth of the business. In
countries like Australia and US it is mandatory to wear masks. This ensures the customers
that they are safe when riding in Uber. The personnel resource value is being challenged at
Uber. Thus, in 2015, California Labor Commissioner’s Office said that a driver for the ride-
hailing service Uber should be classified as an employee, not an independent contractor
(NY Times, 2015)

1.2.6. Environmental

It is widely said that the Uber has escalated the fuel usage and traffic congestions because
of its cars. However, it is not so as per some studies because people also widely use public
transportation methods. Further, as a means of environmental concern Uber has stepped
into a project called uber green that leads to zero carbon emission policy. This shows a
positive growth in the business firm all over the world where it is welcomed in many cities.

Example: An article written in a website journal highlights that, the Uber aims to make use
of this opportunity to drive a green recovery by launching fully electric cars on the Uber
app in London that reduces emissions and keeps the city’s air cleaner. It also encourages
riders to take action on climate change. Also, by 2025 it plans to be make uber fully electric.
The mobility company also plans to launch Uber Green in many other US locations by the
end of 2021. (Verdict, 2021)

1.3. Role of EU and International institutions on business

organizations

The European Union and international institutes such as IMF, WTO, World Bank actively
engages in monitoring and creating trade policies between countries that helps for the
smooth running of the business that operates around the globe following constant rules
and standards. They also help in the growth of the business, in reducing unemployment,
increasing income, sustainable development and economic growth of a country.

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1.3.1. Uber and Role of European Union & International Organizations

The European Union is one of the most outward-facing economies in the world made up
of 28 European member states. It is also considered as the world’s largest single market
area. One of the initial principles of EU was Free trade among its members, and it is
committed to opening up world trade as well. The policies regulated by EU helps make
EU industry and business more competitive. At the same time it promotes job creation
and economic growth by creating a business-friendly environment.

Uber has been identified as an active lobbyist since 2013. Accordingly, EU has taken
measures to protect the rights of uber drivers through December 2021 EU proposal. The
European Commission has made clear that Member States must ensure fairness,
proportionality and nondiscrimination for services such as Uber.

The international organizations such as World Trade Organization and International

Monetary Fund’s role is to provide a sound and safe system for international trade,
payments and allow trading blocs to operate with ease.

There are various commercialism blocs established to grow the economic integration
between countries on a worldwide. Examples of such trade blocs are, EU, NAFTA, PA,
and recently established CPTPP were fashioned in the main to extend the world economic
networks. The perform of trade blocs remains constant globally as their roles look to allow
the interchange of helpful new technologies and ideas, natural resources, labour, and skilled
labour between countries. The trade blocs permits these changes by reducing the dealings
prices associated with the assorted legal, money variations among associated countries.

The roles of international organizations across the world will have an effect on
organizations like Uber in some ways. A corporation like Uber classifies its employee as
contractors however several blocs and regulators don't accept as true with the classification
of employees. The organization faces problems on security problems and payment
strategies in different countries, therefore raising potential security threats and regulative
considerations.

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2.0. Task-02-Presentation

Prepare a presentation suitable to be delivered to an audience of

taxi drivers regarding corporate governance and corporate social
responsibility.
Prepare a presentation with speaker notes in which you should
address the following:
• Given the current economic environment, review various ethical,
moral and socio-cultural issues (including responsibilities to
employees) affecting global organisations.
• Compare and contrast organisational approaches to ensuring
positive policies of ethics and maintaining workforce diversity.
• Critically explore the significance of corporate governance in
global organisations.

Slide 1. What is corporate governance?

Corporate governance is the way by which a firm is directed and controlled using certain
rules, policies and processes. Corporate governance necessitates balancing the interests of
a company's stakeholders, such as shareholders, senior management executives,
customers, suppliers, financiers, the government, and the community while remaining
transparent and accountable.

Notes : So as per the taxi drivers concern they are controlled by the rules and regulations
set by the company they work for. So they are entitled work by balancing the interests of
the Company’s stakeholders such as director, Manager, country manager, customers
(People who come for a ride) and the government.

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Slide 2. Diagram

Director

Government Manager

Taxi
Drivers

Country
Customers
Manager

This diagram shows the simple chart of stake holders those who are interested taxi
business

Slide 3:Benefits of Corporate governance.

 Increases revenue
 Improves brand image
 Increases customer loyality
 Better employee moral
 Greater employee productivity

Notes. Inculcating corporate governance in an organization will result in above benefits.

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Slide 4: What is Corporate Social Responsibility?

Corporate Social Responsibility (CSR) refers to the role of a company in managing its
business and taking decisions related to business while considering the social and
environmental concerns.
Notes : In general it is understood as it is the managing of the business balancing social,
economic and environmental factors while considering the stake holders expectations too.
So as a taxi driver you are responsible to adhere these factors with regard to CSR.

Slide 5: What are business ethics and ethical issues?

Ethics are code of conducts established and followed by business organizations that helps
to gain the trust between business and the customers.

Notes :However, there are ethical issues that are often faced by business organizations
while operating their business. Accordingly some of the most common ethical issues in
international business embody outsourcing, operating standards and conditions,
workplace diversity and equal opportunity, child labor and human rights. Business leaders
should conjointly contemplate religion, belief, politics, environmental concerns and even
the potential for bribery and corruption throughout the global market expansion. The
international businesses are expected to fully go with federal and state safety laws,
environmental laws, fiscal and monetary reporting statutes and civil rights laws.

Slide 6. Ethical issues that come across in taxi business

 Passenger Safety
 Security of Drivers
 Privacy
 Recruitment and Unethical Conduct of Employees
 Unethical leadership

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Slide 7:The moral, socio-cultural issues that affect business organizations
are,

1. Language spoken

2. Religion

3. Culture

4. Customer preferences

5. The attitude of the customers towards the business

6. Abusive customers

Notes: In the context of taxi drivers, they should have the basic knowledge of the
languages that are spoken in the area where they work. This helps them to understand
and serve different groups of people who speak different languages without any
conflicts.
Religion is also considered as a socio-cultural issue faced by the taxi drivers where
they will need to satisfy different groups in the society.
Culture and customer preference may differ place to place. So as a taxi driver they
need to respect and understand each culture.
Another issue is that the attitude of the customers towards the taxi. Some people
respect the drivers while the others just consider them as a paid worker. So the taxi
drivers have to be patient respecting their attitudes.
Abusive customers are also a part of socio-cultural issues faced by many taxi drivers.
Some customers may call taxis to attend parties or any unsociable places. But as a taxi
driver they cannot refuse it and they are compelled to accept the ride. So in such cases
they will come across drunken customers, thugs etc.

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Slide 8.Significance of corporate governance in global organizations.

 To create smoother operations

 It creates a good reputation for the organization positively
 It improves cost efficiencies
 Minimizes the frauds and corruptions that occur in a business organization
 It develops compliance
 The company culture can be developed
 It acts in balance between the interests of all the stakeholders of the organization

Slide 9. Organizational approaches to ensuring positive policies of

ethics and maintaining workforce diversity.

Ethical policies are guidelines for all employees of a company to do the right thing and
behave at high standards at all times. Good ethical policies create a good culture based on
trust and transparency. But workforce diversity is the differences between people who
work together as a staff from different backgrounds.
Notes: Organizations that accepts and welcomes diversity also need to ensure that there
are positive policies of ethics and practices in the organization that helps to protect
employees’ rights.

Slide 10.The following are some of the approaches followed by

organizations to maintain positive policies of ethics.

 Create a code of conduct

 Engage with employees and customers
 Reinforce the uses of code
 Be a good role model
 Reward ethical behavior
 Promote positive ethical policies

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Slide 11.The organizational approaches to maintain workforce
diversity.

 Document policies of the organization and code of conduct

 Provide diverse mentorship
 Conduct diversity training
 Reward diversity referrals
 Offer diverse mentorship

The issues that organizations face with regard to work force diversity can be effectively
managed by following these approaches efficiently within the organizational structure.

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3.0. Task-3-Report

Select a country in which Uber operates and prepare a report in

which you should have:
• An introduction in which you should analyse the significance of
consumer protection laws and online trading in your chosen
country.
• A section providing a summary of the consumer protection laws
and online trading,
• Conclusions explaining what Uber should do to comply with the
identified laws. You should however not limit yourself to the legal
requirements and should investigate protectionist policies and
retaliatory tactics by business and consumer groups.

3.1. Introduction

The e-hailing Uber was launched in 2009.But after four years, in 2013 only it was
established in India. India is a developed country with high population where there is a
good demand for taxis. However, Uber in India is different from the Uber launched in
western countries. India is, however, key to Uber’s future, especially at a time when the
firm is bleeding billions of dollars globally, and growth in the US is tapering. (Quartz,
2017)
So this report is prepared to look into detail about the consumer protection law and online
trading practices that are followed in the country America with regard to Uber.

3.2. What is consumer protection law and why they are important?

According to Wex definition team consumer protection law is defined as Consumer

protection laws safeguard purchasers of goods and services against defective products and
deceptive, fraudulent business practices. So they are enacted to safeguard the buyers who
purchase or enjoys goods and services. Hence, consumers have the right to inquire about
the information on the goods or services given to them. (Cornell Law School, 2021)

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At the same time consumer protection laws benefit the businesses too. A business that
runs abiding the consumer protection laws will gain the good will of the consumers and
become more sought after. The good reputation on their business will increase their
customers, profit and also economic growth. So these laws ensure that businesses are
accountable for consumers and at the same time that guarantees that the business entities
are kept in check by the laws.

3.3. What is online trading?

The modern technological world has paved way for consumers to do all sort of financial
activities online. This including transactions such as banking, shopping, auctions etc. So
online trading can be defined as a method that facilitates buying and selling of commodities,
financial instruments such as mutual funds, equities, bonds, stocks etc. through an
electronic device with the use of internet.

3.4. Significance of consumer protection laws and online trading in

India

One of the main laws that provides protection to the consumers of India is the Consumer
protection act that was introduced in the year 1986. After that certain changes were included
to the act in the year 2002. India being a developed country engages in trade practices with
many parties physically and virtually. The advent of technology and immense usage of
internet has resulted in opening up of large number of e-commerce business all over India.
So this has made drastic changes in the lifestyle, consumer level of the people. Although
they get quality and safer products still consumers are victims of fraudulent and exploitative
practices. Also, a study states that India is the third country next to France for online fraud
reporting in consumer locations, while it is the fifth nation for company location-based
reporting. India has become a number one country for on-line consumer fraud, focusing
and monitoring on electronic governance systems-which could have effect on
India's ease doing business ranking.

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So in India, consumer protection laws in online and offline trading are important for
developing the trust of consumers. They are essential to boost e-commerce of India and
secure and reliable systems help firm to carry out business activities successfully.

3.5. Summary of consumer protection laws and online trading in

India.

The globalization in the world economy and international trade has emphasized the need
of consumer protection. An efficient and effective consumer protection is crucial for all of
us as consumers. Accordingly, the consumer protection laws in India emerged from the
verdict period till now. It all started with the Prevention of Food Adulteration Act that was
introduced in 1954 with an aim to demolish the adulteration of various harmful and toxic
substances that are added in the commodities. So from there the consumer act legislation
was enacted in 1986. After that as there were shortcomings in the consumer act of 1986,
development of technology, consumer behaviors and delays in consumer courts with regard
to consumer cases, a need for the amendment of the act aroused. So the government was
obliged to enforce strong laws that would inspect consumer frauds. So the consumer
protection act 2019 and E-commerce rule 2020 that exists in India now was created. The
old Consumer Protection Act of 1986 is replaced by the above mentioned new act.

The new Consumer Protection Act constructively replaces the old Act and it shapes the
expectations of a digitalized-modern-consumer. The following are the rights of consumer
as defined by the Act.There are six rights included to the new act which are as follows:
 Right to be protected against the marketing of goods, products or services which
can be hazardous to life and property
 Right to be informed about the quality, quantity, potency, purity, standard and price
of goods, products and services
 Right to be assured of access to goods, products and services at competitive prices.
 Right to be heard at appropriate forums
 Right to seek redressal against unfair trade practices that are involved in exploitation
of customers
 Right to consumer awareness (iPleaders, 2016)

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3.5.1.Further, the following are the important key features of the
Consumer Protection Act 2019
1. Establishment of the Central Consumer Protection Authority (CCPA)
The CCPA monitor, promote and protect the rights of consumers. It will also
oversee unfair trade practices, misleading advertisements, and violation of
consumer rights.

2. Penalties for\Misleading Advertisements

The CCPA could impose a penalty of up to 1,000,000 Indian rupees on a manufacturer
or an endorser, for a false or deceptive advertisement and imprisonment for up to for up to
2 years for the same. (Journals of India, 2020)
3. Unfair Trade Practices
4. Product liability
This is an important feature that is introduced in this act. As per this a manufacturer
or a service provider would be required to compensate the consumer in case of any
loss or injury due to a manufacturing defect in the product or a poor service.

5. Covering E-Commerce transactions

The tremendous growth of e-commerce in countries around the globe, especially in
India, has urged an examination of the legal structure regulating online consumer
protection. The image below shows the development of online business in India from
2015-2020

Fig: 1 (Source: Springer Link, 2021)

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 6. Enabling E-Complaints/hearings through video conferences
The new act facilitates consumers to lodge complaints from the place where they
reside. This has reduced the difficulties faced by the consumers in filing cases in
courts.

7. Provision for Mediation

This helps in the case where the consumers prefer to solve the disputes outside the
court.

8. Revised Pecuniary Jurisdiction

The new act has improved the pecuniary jurisdiction of the consumer courts.

3.6. What should Uber do to comply with the consumer protection

laws and online trading?
Many incidents have been recorded worldwide that the Uber fails to comply with the
consumer protection laws and online trading. As Uber is a globally operated company it
should take measures to implement the laws that benefits the consumers and the businesses.
Also, as it functions based on internet, it should take measures or operational units that
consider e-complaints and provide prompt solutions for those complaints. Further, Uber
has to strictly follow consumer protection laws by demolishing unfair trade practices,
monitoring the business with new mechanisms that ensures that the laws are abided by their
employees. Further, the uber should urge to cover e-commerce transactions by regulating
online consumer protection. The privacy of the consumers should be protected by online
trading policies.
This could increase the good will of the company and make Uber as the first choice of
transportation preference for many passengers around the world.

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References

1. (Investopedia, 2022)https://www.investopedia.com/terms/g/globalization.asp
2. (McBride, 2015)https://www.reuters.com/article/uber-impounded-southafrica-
idINL1N0UL1WI20150106

3. (Henley, 2017) https://www.theguardian.com/business/2017/sep/29/uber-clashes-with-

regulators-in-cities-around-the-world

4. (Erixon, 2018) https://ecipe.org/wp-content/uploads/2018/02/PR-TWP-12018.pdf

5. (NY Times, 2015) https://www.nytimes.com/2015/06/18/business/uber-contests-california-

labor-ruling-that-says-drivers-should-be-employees.html

6. (Verdict, 2021) https://www.verdict.co.uk/uber-launches-uber-green-to-reduce-carbon-

emissions/

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